Influential investor Jeffrey Handl (Jeffrey Gundlach) said that bitcoin was a new indicator for the traditional stock market.
“Bitcoin is closer to the lower level of the year last week, and now the SPX (the index Standard&Poor’s 500) on the lower level of the year this week. Bitcoin continues”, — said the founder of DoubleLine Capital, which manages capital of $119 billion.
Bitcoin has such predictive power, “because at the end of last year, he was the personification of the speculative mood,” said the investor, nicknamed the “King of bonds”.
He recalled that in mid-September, the price of bitcoin went up almost vertically, the S&P 500 index, accelerated to the maximum.
“Bitcoin mania was reached in mid-December, and immediately began the collapse. Madness S&P continued until January 26, but the collapse of bitcoin shouted that the speculative mania in the social mood has passed. Then, the S&P collapsed, joining bitcoin in a negative motion”, — said Handlc.
As soon as the S&P plunged to its lows, bitcoin has already strengthened, the S&P virtually unchanged, and then the Nasdaq even close to a new high, he said. But as this new high was made, bitcoin was back in bear market mode. Shortly after this it was time again decline for the stock.
“Obviously, it’s all connected,” — said Jeffrey Handlc.
We will remind that earlier, Swiss scientists on the basis of the law of Metcalf calculated that the total capitalization of bitcoin to the end of the year will drop to $77 billion, i.e. a fall in the price of cryptocurrencies will exceed 60% from current levels.